A severe profitability decline in sugar beet production in all of Europe is one of the consequences of the latest reform of the EU sugar regime. In south of Sweden, sugar beets is the crop that has been the most profitable by far for the last decade. The high profitability has contributed to the high rate of increase in the price of land and has restrained the structural change towards a more effective agriculture. Because of the reform, all sugar beet producers are facing diminishing income and must find ways to compensate this.
The aim of this master thesis is to study how Swedish farmers adapt to the sugar beet reform. A questionnaire was sent to 354 randomly selected sugar beet producers. The questionnaire included questions about farmers' decision making and factors affecting it. Focus of the study is whereas the farmers have found, decided upon or implemented any options to compensate for the income loss. The response rate of the questionnaire was 58 %. The collected data was analyzed with averages and t-tests.
All beet producers have realized that the sugar beet reform is or will be a problem for them. Most of them realized this in 2005 and in average they estimate that they will lose about 200 000 SEK a year due to the sugar regime reform. Of the respondents, 80 % have found options they consider, 64 % have decided upon an option and 54 % have implemented an option. The most common options is to reduce costs, work outside of the company, invest in grain drying and storing, increase acreage, cooperate more, increase beet cultivation, increase other crop than sugar beet and to increase custom agricultural services. Big or small new activities or increase of present activities other than the ones already mentioned was also very common. The range of the options was wide. Among the farmers that have found options that they consider, only one third believe that the options will cover the income losses fully.
When searching for information about the on farm consequences of the sugar regime reform, the most common sources were the Swedish sugar beet producers' central association, Danisco and agricultural magazines. To find information about options of action the farmers prefer to use soil and crop advisers, agricultural magazines, neighbors and colleges, and business advisers. When options were found and evaluated, 73 % of the farmers were found to use analytical methods. When options were decided upon, 83 % of the farmers used analytical methods. This shows that when the choice and implementation of an option comes closer, farmers tend to use more analytical methods.
The respondents were divided into four groups based on how fast they have found, decided upon and implemented options, which indicates different efficiency of the decision making process. The most process-efficient farmers were compared...
